Illinois private equity firm Wynnchurch Capital LP will add a third plastic foam manufacturer to its portfolio amid a recent series of investments.
Wynnchurch will combine Allentown, Pa.-based polystyrene foam manufacturer Insulation Corp. of America with two foam manufacturers, Huntington Foam LLC and Drew Foam Cos. Inc., which Wynnchurch purchased in late 2020.
"The acquisition of ICA is a natural fit with Drew and Huntington and will strengthen our platform by expanding its reach into new, unserved markets," Paul Ciolino, partner at Wynnchurch, said in a Jan. 7 news release. "We believe ICA has a very bright future and are excited to support the company's future growth."
In the news release, Wynnchurch said it is actively looking for acquisition opportunities.
ICA manufactures EPS for applications including building insulation, infrastructure construction, packaging, cold chain and others, the release said.
The terms of the ICA deal were not disclosed. Wynnchurch and ICA did not respond to separate requests for comment by Plastics News.
"Drew, Huntington and ICA will combine to form a market-leading foam products provider focused on customer service and quality," Erin Murphy, managing director at Wynnchurch, said in the release. "We are excited about the future opportunities for this growing investment platform."
Wynnchurch announced on Dec. 29 that it purchased Huntington Foam and is combining the business with Drew Foam, a company that Wynnchurch bought on Nov. 9.
The private equity company bought Greer, S.C.-based Huntington from Mill Point Capital, a private equity firm that has owned Huntington since 2016. Terms of that deal were not disclosed.
Under Mill Point's wing, Huntington made several acquisitions, including TrimTec Systems Ltd. of Grove City, Ohio, in 2018; the assets of Radford, Va.-based Radva Corp. in 2019; and Texas Foam of Bastrop, Texas, in 2019. Huntington currently has seven plants. In addition to Greer, Grove City and Radford, it has locations in Greenville, Mich., and two plants in Mexico: one near Mexico City and one near Saltillo.
Huntington makes custom shape-molded and fabricated foam using EPS, expanded polypropylene and PS/polyethylene copolymer resins. Key end markets include appliance, cold chain, automotive and building products.
Drew Foam, meanwhile, changed hands less than two months ago, when Wynnchurch bought the company from private equity firm Branford Castle Partners LP.
Monticello, Ark.-based Drew Foam was founded in 1965 and specializes in molding and fabricating quick-turnaround expanded PS foam products. Its products include packaging, roof and wall insulation, architectural shapes, geofoam and other construction products.
Drew Foam has plants in Monticello; Portland, Tenn.; Anderson, S.C.; and Cave Spring, Ga. Prior to Wynnchurch, Branford Castle owned the company for two years. Prior to that, Gladstone Investment Corp. owned Drew Foam for six years.
Other Wynnchurch holdings include one plastics company: high density PE pipe maker Infra Pipe Solutions Ltd. of Mississauga, Ontario.
Mill Point Capital had announced the sale of Huntington Foam on Dec. 15, but at the time did not disclose the identity of the buyer.
"We are very proud of what we accomplished together with the Huntington team over the last few years," Dustin Smith, a partner at Mill Point Capital, said in a news release. "Since the initial transaction in 2016, Huntington has evolved into a leading player in the foam packaging industry and is poised to benefit from continued strong trends in cold chain packaging."